South Africa is to set about an ambitious economic reform agenda that has similarities with Saudi Arabia’s efforts to stimulate investments. South Africa President Cyril Ramaphosa last month revealed a plan that aims in helping the country recover from corona’s impact. This plan includes fast tracking projects and boost infrastructure spending. Like Saudi Arabia, South Africa is getting transformed into more sustainable and modernized model from commodity- based economic foundation.
This plan includes fast tracking projects and boost infrastructure spending. Like Saudi Arabia, South Africa is getting transformed into more sustainable and modernized model from commodity- based economic foundation.
Ramaphosa is looking forward to attract as much as $100 billion in investment to gain strength to the country’s slumping economy. Saudi Arabia is seen as a potential partner in a number of planned projects in the country.
Over the next decade, Pretoria targets an average annual economic growth of 3 percent. It has initiated a state infrastructure fund that provides 100 billion rand ($6 billion) in finance. Expected that the government will unveil a further trillion rand in investment.
Government investment
The government of South Africa is spending about 13.8 million rand creating 800,000 jobs and economic opportunities by March 2021. It is expected that economy expands 3 percent next year and now it is 0.5 percent low than expected previously.
Trade relations between Saudi Arabia received a great strength in 2018 when Ramaphosa visited the Kingdom. Both the countries started to move forward for a radical economic transformation by boosting private sector participation.
South Africa and Saudi Arabia pair likely in one area i.e. power generation and renewables.
“The pandemic worsened an already dire situation, severely disrupting economic activity and putting numerous investments on hold,” said Ramaphosa on Tuesday.” Our priority now is driving the implementation of South Africa’s Economic Reconstruction and Recovery Plan.”
Despite the negative impact of businesses across the African continent, positive vibes are starting now from South African industry. The plans introduced by the government are giving good results as the key manufacturing sectors are recovering.
